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CALL FOR EXPRESSION

OF INTEREST
GREEN PROSPERITY
PARTNERSHIP GRANTS

GREEN PROSPERITY PROJECT


Version 01 - 13 November 2014
GREEN PROSPERITY PROJECT | CALL FOR EXPRESSION OF INTEREST

This document was produced with the support provided by the American people through the Millennium Challenge
Corporation. The information, opinions and conclusions here do not represent the standing of the
Millennium Challenge Corporation or U.S. Government.
Partnership Grants
Green Prosperity Facility

Call for Expressions of Interest


for Green Prosperity Partnership Grants
GREEN PROSPERITY FACILITY | EXPRESSION OF INTEREST

In November 2011, the Government of the United States, through the Millennium Challenge
Corporation (MCC), entered into an agreement with the Government of Indonesia (GOI) aimed at
reducing poverty in Indonesia through economic growth (the Compact). In particular, the Compact
supports GOI’s development objectives in the areas of procurement modernization, health and
nutrition improvement and sustainable natural resource management through three projects: the
Procurement Modernization Project, the Community-Based Health & Nutrition to Prevent Stunting
Project, and the Green Prosperity (GP) Project. GOI established Millennium Challenge Account-
Indonesia (MCA-Indonesia) to manage and implement the Compact and its three projects on behalf
of the GOI. The Compact came into force on April 2, 2013 and its five-year term will conclude on
April 2, 2018.

The GP Project, the largest of the three Compact projects, has two specific objectives: increasing
household income and reducing land-based greenhouse gas emissions by promoting utilization
of renewable energy and sustainable natural resources management. The GP Project, therefore, is
3 expected to reduce poverty, conserve the environment and create sustainable economic growth.
More details on the GP Project objectives and its four activities are available at http://gp.mca-
indonesia.go.id/about-gp/.

The Green Prosperity Facility (GP Facility) is the centerpiece activity of the GP Project, and is a
grant-making facility that will invest in low-carbon development projects in two thematic areas:
natural resources management (NRM) and renewable energy (RE). One of the key priorities of the
GP Facility is to mobilize private sector (non-state) resources and leverage development experience
by entering into Partnership Grant agreements which provide grants on a co-funding basis for
projects that meet GP objectives.

MCA-Indonesia and its GP Facility is now issuing a Call for Expressions of Interest (EOI) to
identify partners and develop innovative NRM and RE partnerships under this Green Prosperity
Partnership Grants (Partnership Grants) initiative. The purpose of Partnership Grants is to establish
partnerships that will catalyze greater private sector investment in improved land use and resource
management practices and development of renewable energy resources to increase community
access to energy. Details on the types of projects that are eligible for consideration under this Call
for EOI are provided in Sections I and II below.

Interested parties should submit an EOI in accordance with detailed instructions as set forth in
the Annexes. The EOI and its accompanying Concept Note must outline a clear program logic
and technical approach and demonstrate ability to meet basic eligibility criteria and co-funding
requirements as detailed in Sections V and VI below. After receipt, screening and appraisal of the
EOI, as the second step in the Partnership Grants selection process, MCA-Indonesia may select
those potential Partnerships that pass the minimum requirements and issue them an invitation to
develop and submit full Partnership proposals. Only those that respond to this EOI and whose
submissions satisfy the minimum requirements shall be considered for invitation to submit a full
Partnership Grant proposal.
All submissions failing to pass the organizational and project eligibility requirements and/or
satisfy minimum requirements required for Concept Notes shall be declined and shall not undergo
further review. Written notification will be provided by MCA-Indonesia to the potential Partnership
applicant. The sponsors of declined EOIs may participate in future Calls for EOI based on new
proposals.

This Call for EOI does not represent a commitment of funding by MCA-Indonesia, and the
receipt of an EOI shall not obligate MCA-Indonesia to provide funding. The potential Partnership
GREEN PROSPERITY PROJECT | CALL FOR EXPRESSION OF INTEREST

submitting an EOI shall bear all costs and expenses for the preparation and submission of its EOI.

MCA-Indonesia anticipates awarding Partnership Grants in the US$1 million to US$20 million range
per Partnership project. For most of the Partnership Grants project types outlined in Section II
below MCA-Indonesia will require partner co-funding on a 1:1 basis with the GP “match” not to
exceed 50% of total project costs and a grant partner commitment to provide a minimum of US
$1 million of their own resources per project. Details on co-funding requirements can be found in
Section V below.

I. Background

The majority of Indonesia’s poor live in rural areas that are rich in natural resources, but high-impact
and illegal logging, land conversion for agriculture and mining and other unsustainable land use
practices threaten the country’s ability to sustain economic growth and reduce poverty. Lack of
clarity about land and natural resource use licensing and the jurisdictional boundaries of villages
and limited knowledge on improving land use and management practices deter investment and
impede GOI’s ability to effectively manage critical natural resources.

Despite GOI’s efforts to address the problem, Indonesia remains among the world’s top emitters
of greenhouse gases. The majority of greenhouse gas emissions result from deforestation, loss
of peat land and other land use changes, though emissions from energy and industrial sources
are also growing rapidly. This situation is exacerbated by a limited provision of clean energy, with
many Indonesians, especially in remote rural areas, being dependent on expensive and unreliable
powergeneration from fossil fuel.

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The GP Project seeks to address these critical constraints to economic growth while supporting
GOI’s commitment to a more sustainable, less carbon-intensive future. A primary goal of the
GP Project, via its GP Facility, is to establish a new and lasting model for developing, financing,
and implementing green growth projects at the local level. In doing so, the GP Project aims to
catalyze greater private sector investment in low-carbon growth strategies for Indonesia, spur
local entrepreneurship and financing through emerging opportunities in renewable energy and
innovative land use practices and build greater capacity and commitment among government, civil
society and the private sector to the principles of sustainable development. The Partnership Grants
initiative of the GP Facility (and subject of this Call for EOIs) focuses specifically on identifying
opportunities that take advantage of shared interests (or shared value) from both the public
sector as well as private sector in forestry, agriculture and renewable energy resources in order to
stimulate investment.

Prior to Entry into Force (EIF) of the Compact, the GOI identified 4 starter districts in which to
focus activities and identify project types that would/could meet GP objectives. Eight (8) such
projects were identified and Pre-Feasibility Studies (PFS) conducted in order to categorize types
of eligible projects in line with GP Project objectives, determine basic economic viability and
understand implementation issues and timelines. These 8 PFs can be found at http://gp.mca-
indonesia.go.id/en/library/supporting-documents and can, if helpful, be used as reference/guidance
for those interested in responding to this Call for EOIs as they contain detailed examples of
program logic, economic analysis and identification of environmental and social project risks and
priorities.

II. Potential Project Categories for NRM and RE Partnership Grants

Many GP Districts, with their rich natural resource base, will support a “landscape based approach”
to project development and selection and, all things being equal, the GP Facility and its Green
Prosperity Partnership Grants initiative encourages an integrated project approach that addresses
multi-sector and community issues (the “landscape”) required to effectively address/meet GP
objectives in the targeted GP districts and communities. As discussed in Section III below, while
several geographic landscapes have been defined in the four (4) starter districts, for most of the
24 GP Districts specific geographic landscapes (and/or model projects) have not yet been formally
defined, therefore, when preparing proposals applicants are required to identify and describe the
geographic landscape that inform project design. A broader discussion of landscape approach
issues can be found at http://gp.mca-indonesia.go.id/en/about-gp/landscape-approach/
GREEN PROSPERITY PROJECT | CALL FOR EXPRESSION OF INTEREST

MCA-Indonesia is open to funding new projects specifically developed for the purpose of either
initiating a partnership or scaling up/expanding an on-going project within the GP Project’s target
geographic areas. The table below provides a list of indicative projects types that fall under the two
thematic GP focus areas of NRM and RE.

Concept Notes submitted as part of this EOI will need to demonstrate a comprehensive
understanding of existing challenges, including their impact on community and environment,
targeted beneficiaries and potential increased household income, and how the proposed project
would address those challenges.

PROJECT CATEGORY INDICATIVE PROJECT TYPES


Improved land-use 1) Integrated watershed protection and natural resource management
practices and protection projects, including but not limited to:
of natural resources - Ecosystem protection or recovery, including peat land restoration,
rehabilitation of riparian zones and wetlands, integrated mangrove
protection, and coastal management related to upstream
deforestation
- Protection of watershed and river basins linked to existing or
newhydropower projects
- Forest conservation, community forestry, and sustainable forestry
management, including timber and non-timber forest products
(NTFP) production and marketing
- Ecotourism development
- Other efforts aimed at reducing deforestation, improving land-use
practices and rehabilitation of degraded lands

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2) Single and/or multiple commodity value chain projects aimed at im-
proved agriculture practices, marketing and certification practices that
promote increased on-farm incomes, improved community nutrition,
sustainable production (on existing land under production) and reduced
GHG emissions (e.g. cocoa, coffee, oil palm, rubber, spices, protein rich
food grains such as soybeans and legumes, timber, non-timber forest
products)

3) Agroforestry (e.g trees along border (TAB), increasing land use pro-
ductivity through integration of woody species with agricultural system,
NTFPs)

4) Innovative approaches to better utilization of degraded lands that


will help preserve High Conservation Value (HCV) land and discourage
expansion of agriculture production onto environmentally sensitive lands
(e.g. oil palm, fish ponds on degraded lands combined with tree/food
plantings on the pond banks)
Renewable energy (RE) 5) Projects for domestic or community applications utilizing non-food
development for rural grade biomass crops (capable of propagation on marginal lands),
communities agricultural and livestock biomass wastes as well as other selected
natural resources (wind, water, and solar) for provision of renewable
energy (RE) for electricity generation (≤300kW), biofuel production
and/or heat generation in rural communities,including but not limited to:
- Biogas from agricultural and livestock wastes for utilization for
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cooking stoves, food preparation and preservationand enterprise


and value chain development (or other appropriate household
applications);
- Biomass utilization for drying crops during harvesting or other
appropriate household as well as small and medium enterprises
(tea and coffee drying and processing) applications to minimize
deforestation as an energy source;
- Solar/microhydro/wind energysystems for community or household
applications (e.g.pumping or lifting irrigation water, lighting, electrify-
ing community infrastructure, and internet access systems);

6) Projects that use biogas from commercial scale agricultural and


livestock wastes (e.g. methane capture from palm oil, manure and/or
other wastes) to generate electricity (≤1MW) for community use and
their associated micro grids

Applicants from the palm oil industry should (i) demonstrate a commitment to sustainable
production and a supply chain that sources only sustainably produced oil palm; (ii) commitment to
comply with Indonesian Sustainable Palm Oil (ISPO) certification; and (iii) be registered member of
the Indonesian Oil Palm Association (GAPKI).

It is envisioned under this Partnership Grant call that the scale of RE projects will vary dependent
upon the objectives of the Applicant (potential) Partner. For example, a multiple application of
sub-micro technologies (e.g. roof top PV based electrification of community buildings – clinics
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& schools; biogas manufacturing from livestock waste for individual cooking and domestic
refrigeration) is acceptable as is a single micro scale RE application. The important element is that
the Partner’s objectives align with those of MCA-Indonesia’s and GP Project objectives.

III. Geographic Focus for the GP Project

The GP Project has identified and selected 10 Provinces and 24 Districts as potentially eligible for
funding by the GP Facility. A list of these targeted provinces and GP Districts are provided in the
table below.

Provinsi Kabupaten
1. Jambi (1) Merangin, (2) Muaro Jambi, (3) Kerinci, (4) Tanjung Jabung Timur
2. West Sulawesi (5) Mamuju, (6) Mamasa
3. West Nusa Tenggara (7) Lombok Tengah, (8) Lombok Timur, (9) Lombok Utara
4. East Nusa Tenggara (10) Sumba Timur, (11) Sumba Barat, (12) Sumba Tengah, (13), Sumba Barat Daya
5. West Sumatra (14) Solok Selatan*, (15) Pesisir Selatan*
6. South Sulawesi (16) Luwu Utara*, (17) Luwu Timur*
7. Southeast Sulawesi (18) Kolaka Utara*, (19) Kolaka*
8. West Kalimantan (20) Kapuas Hulu*, (21) Sintang*
9. North Kalimantan (22) Malinau*
10. East Kalimantan (23) Mahakam Ulu*, (24) Berau*
* MoU’s and further assessment in-process
As referenced above, during the Compact and GP Project development process some model
projects in the four starter districts were identified. They include 4 geographically defined
landscapes in Jambi and West Sulawesi. More details on these sample landscapes can be found at
http://gp.mca-indonesia.go.id/en/project-landscape/

While working in the targeted 10 provinces and 24 GP Districts is a priority for MCA-Indonesia given
they have already been through the district selection and MOU processes (9 MOUs still in process),
GREEN PROSPERITY PROJECT | CALL FOR EXPRESSION OF INTEREST

inclusion of other and/or adjacent districts within the 10 targeted provinces will be considered
if inclusion of these new districts is (i) vital for the success of the proposed project (i.e. it will
strengthen the quality of the proposal as well as the results and impacts of the proposed project);
and (ii) results in an increased level of private sector co-funding. The justification for including
other districts must be clearly articulated in the Concept Note.

The inclusion of any additional districts will have to undergo an assessment and approval process
similar to that of the targeted 24 GP Districts, including an assessment of the district’s progress and
commitment to spatial planning and establishing village boundaries; obtaining approval from MCA-
Indonesia Board of Trustees and MCC; and establishment of an MOU.

IV. Implementation Timeframe

As mentioned above, the Compact will conclude on April 2, 2018. Compact funding disbursements
for the GP Facility must be completed prior to the end of the Compact.

Given the time and location constraints, MCA-Indonesia is interested to see proposals from
applicants that demonstrate a partnership approach and equitable proposals for the disbursement
of GP matching and partnership co-funding requirements against clearly defined project milestones,
especially those that will impact the criticaloutcomes of the project. Applicants will be required in
this EOI to indicate timeline for full project completion and include description of what activities will
be paid during the Compact timeline and by whom and what will be continued by the partnership
after Compact end date.

V. Co-funding Requirements

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Partnership Grants are made available for projects that will meet the business objectives of the
project partners as well as the GP Project objectives of improved incomes and livelihoods and the
reduced emission of greenhouse gases in targeted communities. The financial commitments of the
partners in these agreements will reinforce these complementary objectives, enhance the prospects
for durable results and promote increased investment in renewable energy, sustainable natural
resource management and improved land-use practices.

For most categories of projects under this Partnership Grants initiative, MCA-Indonesia will require
partner co-funding on a 1:1 basis with the GP “match” not to exceed 50% of total project costs.
The minimum grant award request is for US$1 million per Partnership project and a maximum
grant award is $10 million per Partnership project. However, MCA-Indonesia reserves the right to
adjust both the minimum co-funding requirement and/or its portion or ratio of matching funds in
a particular category of projects as appropriate and in response to input received during this EOI
phase. Other factors being equal, those potential Partnerships that commit to providing a higher
share of co-funding shall be preferred to those offering a lower share of co-funding.

Sources of the co-funding contributions must be private in nature and come from the critical and
core partners in the Partnership. Contributions are considered to be private in origin, for purposes
of meeting the co-funding requirement, if their source is one of the following: a private commercial
entity, private venture capital firms or banks, individual investors, industry associations and/or
private grant-making foundations or philanthropic entities. In the case of mixed public/private
ownership of any of the above, the source will be considered “private” if more than 50% of the
equity of the enterprise is held by individuals or wholly-private organizations.

Contributions from NGO (local and international)and multilateral institutionsin a partnership


consortium can count against the private sector 1:1 co-funding requirement if the contributions to
the NGOs (from donors or other sources) were received specifically to be used by the partnership
for the project being proposed to the GP Facility for a Grant Partnership. Contributions already
spent by NGOs or other institutions on similar projects in the GP Districts do not count against
the private sector 1:1 co-funding requirement, even if those contributions were spent on a project
that is being proposed for scale-up using Partnership funding. The intent is for Green Prosperity
Partnership Grants to leverage additional, new resources toward achieving the proposed
objective.

Co-funding from potential Partnerships is expected to be provided in the form of cash and/
or documented direct payments to cover agreed costs as specified in any eventual Partnership
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Agreement. Generally, a minimum cash contribution of 25% of project value paid into project
operating accounts will be required for Partnership Grants. Where this requirement cannot be met,
the value and impact of all resources being offered will be more closely reviewed and considered.

Details on the source of funds and a warrant that these funds may be used in the proposed project
would be required prior to an award. More details on the co-funding requirements can be found at
http://gp.mca-indonesia.go.id/en/gp-facility/partnership-grant/co-funding-requirements/.

VI. Eligibility Requirements for EOI for Green Prosperity Partnerships

MCA-Indonesia will undertake a screening of all submitted EOIs and their Concept Notes against
a set of eligibility and assessment criteria outlined below. An EOI will be advanced to the second
stage of a two-stage process if it satisfies all organizational and project eligibility criteria outlined
in Section VI-A and VI-B below and meet the minimum Concept Note requirements outlined in
Section VI-C. All EOIs that pass the minimum requirements may be invited by MCA-Indonesia to
prepare and submit detailed project proposals. For the detailed proposals there will be additional
and more specific appraisal criteria that will build and expand on the entry-level criteria listed
below. Only those that respond to this EOI and whose submissions pass the eligibility criteria shall
be considered for invitation to submit a full Partnership proposal.

MCA-Indonesia recognizes that the knowledge, skills and on-the ground presence and experience
needed for a successful partnership may not reside with any one organization or potential
applicant. In addition, MCA-Indonesia’s requirements for a minimum 1:1 match of new, additional
funding by the potential Partnership and the objectives could require resources and inputs from
multiple parties or stakeholders. Therefore, MCA-Indonesia supports and encourages submissions
from potential Partnerships that include/involve consortia arrangements and structure.
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A. Organizational Eligibility

1. The Applicant or Lead Partner organization must be an entity legally registered in Indonesia
and authorized to conduct all activitiesgermane to the purpose of the partnership. Applicants
and/or Lead Partners can include multinational or national corporations; international and
national banks/financial institutions; international and national NGOs, foundations,and
multilateral institutions; or trade or professional associations. The Applicant (if single
organization) and/or Lead Partner must have an established or a representative office in
Indonesia as per the Presidential Decree/Kepres No. 80/2011.
2. The Applicant and its Consortium Partners must be able to meet co-funding requirements.
Partners contributing against the co-funding requirement scan include multinational or national
corporations, international and national banks/financial institutionsfoundations,or trade or
professional associations. Contributions from NGOs (local and international) and multilateral
institutions in a partnership consortium can count against the private sector 1:1 co-funding
requirement if the contributions to the NGOs/institutions (from donors or other sources) were
received specifically to be used by the Partnership for the project being proposed to the GP
Facility for a Grant Partnership.
3. The Applicant and/or Lead Partner must demonstrate a proven track record in developing,
managing and implementing NRM and/or REprojects
4. The Applicant and/or any of its partners must not fall under the Non-Eligible Project Partnersas
detailed in http://gp.mca-indonesia.go.id/en/gp-facility/partnership-grant/non-eligibility-
criteria/

B. Project Eligibility

The projects/activities proposed by the potential Partnership must:


1. Meet GP Project objectives and requirements as outlined in the Compact (see http://www.mcc.
gov/documents/agreements/compact-indonesia.pdf).
2. For most categories of projects under this Partnership Grants initiative, have a minimum match
of 1:1 US$1 (in cash or documented direct payments) from the Lead Partner organization (and/
or the consortium it represents) to every US$1 from MCA-Indonesia. The minimum project size
is $2 million being a $1 million match from MCA-Indonesia to a Partnership contribution of $1
million.
3. Have the project implemented (and co-fund apply) within the GP Project’s Districts (the
existing 24 GP Districts and any additional district approved as described in Section III above).
4. Indicate timeline for full project completion and include description of what activities will be
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paid during the Compact timeline (by April 2, 2018) and by whom and what will be continued
by the partnership after Compact end date
5. Must not fall under the Non-Eligible Project list and/or cause a significant social and gender
based exclusion as defined in the MCC Gender Policy (https://www.mcc.gov/documents/
guidance/mcc-policy-gender.pdf); environmental, health, or safety hazard as defined by the
MCC Environmental Guidelines or involve removal of existing non-degraded natural forest to
make way for a plantation, orchard or farm. A complete list of non-eligible projects is provided
in the the Non-Eligible Projectlist http://gp.mca-indonesia.go.id/en/gp-facility/partnership-
grant/non-eligibility-criteria/

C. Concept Note Content

After passing the organizational and project eligibility requirements outlined in Sections V-A and
V-B above, Concept Notes, submitted as part of the EOI, should, at a minimum, clearly address and
respond to the three (3) categories of issues outlined below and should be a maximum of 10 pages.
Those Concept Notes that do not adequately respond to the below minimum content requirements
will not be invited to submit a full, detailed proposal. (See Annex 2 for additional instructions).

1. Executive Summary
Maximum one-page summary that will include project title, location, timeframe, budget
project costs, basics of funding structure, and summary of the information provided in the
three sections below.

2. Project Rationale and Objectives


• How the proposed project aligns and supports GP Project objectives.
• Business case for: 1) why this Partnership is needed in Indonesia (“problem statement”);
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2) why private sector stakeholders would invest in the proposed project; 3) why public
funds should be used to leverage the private sector investment; and how any proposed
intervention is environmentally sustainable, promotes social equity and is economically
viable
• Logical or results framework that demonstrates how the proposed interventions
will address the problem outlining the objectives, outputs, expected outcomes, and
assumptions. (See sample project logic for NRM project at http://gp.mca-indonesia.go.id/
gp-facility/partnership-grant/sample-of-project-logic/)

3. Technical Approach, Beneficiaries and Targets


• Description of the project interventions and proposed approach (including identification/
description of “landscape”) and tools, including roles for various sponsors, partners in
each activity. Each project intervention should be linked to the objectives outlined above
and should be associated with a measurable target.
• Description of targeted beneficiaries by district (and sub-district if possible) identifying
different groups and their livelihoods, and indicate proportion of targeted beneficiaries
from women, men and marginalized populations. Description of key local institutions
active in the target area and working with target population in proposed GP activities
should also be included.
• Discussion as to how the proposed approach/activities take into consideration best
practices, lessons learned and application of innovative approaches that are adoptable and
replicable.
• Basic project timeline including major project milestones that have potential to address
implementation risk issues related to project completion after life of the compact, if
applicable.
• Discussion and demonstrated understanding of key priorities and risks for the proposed
project as outlined in MCA Indonesia’s Environment and Social Management System
(ESMS) Framework, the GP Project ESMS and GP Project Social and Gender Integration
Plan (SGIP), including identification of any studies that will be required to further
understand and identify risks, mitigation and opportunity options related to environmental
and social issues. These documents along with the IFC Performance Standard documents
(which underpin the ESMS) can be found at http://www.ifc.org/wps/wcm/connect/
c8f524004a73daeca09afdf998895a12/IFC_Performance_Standards.pdf?MOD=AJPERES

Discussion of technology used (for RE projects only), its applicability to project context,
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how facilities will be sited, similar experience in rural SE Asia setting (ideally Indonesia),
recurring Operation and Maintenance considerations, and sustainability assessment (what
is design life and availability of components, who will pay what to use them, how they
will be replaced, resource availability assessment and fuel supply considerations, etc).
Applicants should be aware that feasibility studies will be required that confirm these
preliminary assessments during the detailed project proposal/application phase that
follows this Call for EOIs.

4. Budget
• Estimated budget, including information as to what will be covered by the GP “match”
and what will be covered by the proposed partnership co-funding contribution; broken
down by year and main activities. The more aggressive the match, the more competitive
a proposal will be. Single and/or multiple value chain projects should have a minimum 1:1
match/funding requirement.
• For RE proposals, budget should include a consideration of any operation and
maintenance expenses that will be required over the life of the asset and a clear proposal
on who will cover them and how.

Note: While not required at this EOI stage, Applicants should be aware that MCA-Indonesia will
undertake Economic Analysis (EA) in the evaluation of the proposed project at the full proposal
stage. MCA-Indonesia requires that to be eligible for the GP Project funding, proposed projects
must have an Economic Rate of Return (ERR) of at least 10% (http://gp.mca-indonesia.go.id/en/
about-gp/economic-rate-of-return-safe-guard/). Applicants will be asked to provide needed data
and inputs in the detailed proposal that will allow an ERR to be calculated. Accordingly, Applicants
should consider this prior to making application.
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In addition, Applicants of any project proposal that requires a license or permit that are selected
to continue to the second stage of this two-stage process will be required todemonstrate progress
with obtaining their approval and provide a road map documenting expectation for finalization.

VII. Application Content

The EOI shall include the following three documents:


A. A Cover Letter conveying the Applicant’s Expression of Interest to partner with MCA-Indonesia
in Grant Partnership initiative, including the value of USD co-funding and required GP match.
Please use the template provided in Annex 1.
B. Partnership Overview, including information on applicant/lead organization, members
of consortium (if applicable) and funding structure (total project costs and co-funding
contributions by partners. Please use the template provided in Annex 2.
C. Concept Note outlining project rationale and objectives, technical approach, targets and
budget within the the 10 page limit. Please usethe template in Annex3.

All three documents should be in English or Indonesian.

VIII. Timeline and Submission Information

The complete EOI Application (Cover Letter, Partnership Overviewand Concept Note as per Section
VI above) should be submitted in both hard/printed copy and electronic copy, and must be received
by MCA-Indonesia no later than December 5, 2014 at 12:00 noon Jakarta time.
• Printed copy of the complete EOI should be sent to:
MCA-Indonesia
MR21 Building, 11th Floor
Jalan Menteng Raya No. 21
Jakarta 10340, Indonesia

• Electronic copy of the complete EOI should be e-mailed to: gpf@mca-indonesia.go.id


GREEN PROSPERITY PROJECT | CALL FOR EXPRESSION OF INTEREST

Queries for clarification related to this Call for EOI may be submitted to the above e-mail, latest
by October 31, 2014. MCA-Indonesia will respond to all queries, and responses will be made
public and posted on the GP portal at http://gp.mca-indonesia.go.id/contact-us/ no later than
November 7, 2014.

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Annex 1 | Cover Letter - Expression of Interest

EXPRESSION OF INTEREST FOR PARTNERSHIP GRANTS


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To:
Millennium Challenge Account-Indonesia
MR21 Building, 11th Floor
Jalan Menteng Raya No. 21
Jakarta 10340, Indonesia

Attn. Green Prosperity Project Director

[Place, Date/Month/Year]

Dear Sir,

We the undersigned, [name of organization, include members of the consortium, if applicable],are


[type of organization] based in [complete address of organization, including country location].

Herewith we would like to convey our interest topartner with MCA-Indonesia in the Partnerships
Grants. The total cost of the project being proposed for the purpose of this Partnership is
US$[insert amount],of which US$[insert amount] will be our contribution (US$ -insert amount- in
cash, plus US$ -insert amount- of in-kind contribution), while the remaining US$[insert amount] is
sought to be funded by MCA-Indonesia’s Partnership grant.

We are more than happy to discuss any details regarding our Expression of Interest Application if
required.

Sincerely yours,
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[Signature of the Applicant’s Representative]

[Name & Position of Applicant’s Representative]


Annex 2 | Partnership Overview
Applicant information provided below must describe and provide adequate information as
to how the Applicant is compliant with Organizational and Project Eligibility requirements
as described in detail in VI.A above, including that neither the Applicant and/or any of its
consortium partners must not fall under the Non-Eligible Project Partners and/or Non-
eligible Project lists as detailed in http://gp.mca-indonesia.go.id/en/gp-facility/partnership-
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grant/non-eligibility-criteria
A. ORGANIZATION (or LEAD ORGANIZATION, if applying as a Consortium)
1. Organization Name
2. Organization Address
Postal Address
Phone / Fax
Website
3. Country Registration
(The Applicant (if single organization) and/
or Lead Partner must have an established or
a representative office in Indonesia as per the
Presidential Decree/Kepres No. 80/2011)
4. Organization Type
(multinational or national corporations;
international and national banks/finan-
cial institutions; international and national
NGOs,foundations, and multilateral institu-
tions; or trade or professional associations –
please specify)
5. Organization Description
(Brief information regarding organizational
structure, organizational objectives, core busi-
13 ness, and regular activities. The Applicant and/
or Lead Partner must demonstrate a proven
track record in developing, managing and im-
plementing NRM and/or RE projects .)
B. CONTACT PERSON
1 Name of Head of the Organization
Position
Postal Address
Phone/Fax
E-mail
2 Name of Contact Person for this EOI
Position
Postal Address
Phone/Fax
E-mail
C. MEMBERS OF CONSORTIUM (if applying as a Consortium)
1. Organization Name
Postal Address
Phone / Fax
Website
E-mail
Organization Type
(The Applicant and its Consortium Partners
must be able to meet co-funding require-
ments.Partners contributing against the
co-funding requirements can include multina-
tional or national corporations, international
and national banks/financial institutions foun-
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dations, or trade or professional associations


–please provide details for all partners contrib-
uting against the co-funding requirements.

Contributions from NGOs (local and inter-


national) and multilateral institutions in a
partnership consortium can count against the
private sector 1:1 co-funding requirement if the
contributions to the NGOs/institutions (from
donors or other sources) were received spe-
cifically to be used by the partnership for the
project being proposed to the GP Facility for a
Grant Partnership.)

Organization Description
(For each member of the partnership provide
brief information on core business, activities or
past/current projects involved)
Contact Person for this EOI
(Name, title/position, phone, e-mail)
2 Organization Name
Postal Address
Phone / Fax
Website
14 E-mail
Organization Type

Organization Description

Contact Person for this EOI

D. PROJECT TYPE, LOCATION, COST AND FUNDING STRUCTURE


Project Title and Type
(Project Category including brief description
of projectand how it meets GP Project
objectives.)

Project Location(s)
(By Province, District and sub-district)

Timeframe
(Timeline for full project completion, including
brief description of what activities will be paid
during the Compact timeline and by whom
and what will be continued by the partnership
after Compact end date (April 2, 2013))
Estimated Total Project Cost US$ ______________________(Total Cost)
(Including tax)

Funding Structure US$ ______________________(Your organi-


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(Please describe the project’s co-funding zation/consortium)


structure or cost distribution, specifying the
amount that will be provided by your organi- US$ ______________________(requested
zation/the consortium, amount requested from MCA-Indonesia)
from MCA-Indonesia, as well as other funding-
if applicable; including tax) US$ _____________________ (Value of
resources leveraged from other organizations
but that don’t meet the co-funding require-
ments –if applicable. Please also mention
their names)

E. OTHER RELEVANT INFORMATION

Please include here other relevant information that may assist MCA-Indonesia’s assessment of your
EOI (maximum 1 page).

15
Annex 3 | Concept Note

Please describe the proposed project,addressing the key elements below. This section
should should be a maximum of 10 pages.
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1. Executive Summary
• Maximum one-page summary that will include project title, location(s), timeframe, budget/
project costs, basics of funding structure and summary of the information provided in three
sections below.
2. Project Rationale and Objectives
• How the proposed project aligns and supports GP Project objectives.
• Business case for: 1) why this Partnership is needed in Indonesia (“problem statement”); 2) why
private sector stakeholders would invest in the proposed project; 3) why public funds should
be used to leverage the private sector investment; and how any proposed intervention is
environmentally sustainable, promotes social equity and is economically viable.
• Logical or results framework that demonstrates how the proposed interventions will address the
problem outlining the objectives, outputs, expected outcomes, and assumptions. (See sample
project logic for NRM project at http://gp.mca-indonesia.go.id/gp-facility/partnership-grant/
sample-of-project-logic/)

3. Technical Approach, Beneficiaries and Targets


• Description of the project interventions and proposed approach (including identification/
description of “landscape”) and tools, including roles for various sponsors, partners in each
activity. Each project intervention should be linked to the objectives outlined above and should
be associated with a measurable target.
• Description of targeted beneficiaries by district (and sub-district if possible) identifying different
groups and their livelihoods, and indicate proportion of targeted beneficiaries from women, men
and marginalized populations. Description of key local institutions active in the target area and
16 working with target population in proposed GP activities should also be included.
• Discussion as to how the proposed approach/activities take into consideration best practices,
lessons learned and application of innovative approaches that are adoptable and replicable.
• Basic project timeline including major project milestones that have potential to address
implementation risk issues related to project completion after life of the compact, if applicable.
• Discussion and demonstrated understanding of key priorities and risks for the proposed
project as outlined in MCA Indonesia’s Environment and Social Management System (ESMS)
Framework, the GP Project ESMS and GP Project Social and Gender Integration Plan (SGIP),
including identification of any studies that will be required to further understand and identify
risks, mitigation and opportunity options related to environmental and social issues. These
documents along with the IFC Performance Standard documents (which underpin the ESMS)
can be found at http://www.ifc.org/wps/wcm/connect/c8f524004a73daeca09afdf998895a12/
IFC_Performance_Standards.pdf?MOD=AJPERES
• Discussion of technology used (for RE projects only), its applicability to project context, how
facilities will be sited, similar experience in rural SE Asia setting (ideally Indonesia), recurring
Operation and Maintenance considerations, and sustainability assessment (what is design life
and availability of components, who will pay what to use them, how they will be replaced,
resource availability assessment and fuel supply considerations, etc).

4. Budget
• Estimated budget, including information as to what will be covered by the GP “match” and what
will be covered by the proposed partnership co-funding contribution; broken down by year and
main activities. The more aggressive the match, the more competitive a proposal will be. Single
and/or multiple value chain projects should have a minimum 1:1 match/funding requirement.
• For RE proposals, budget should include a consideration of any operation and maintenance
expenses that will be required over the life of the asset and a clear proposal on who will cover
them and how.
17
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18
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GREEN PROSPERITY PROJECT | CALL FOR EXPRESSION OF INTEREST

19

This document was produced with the support provided by the American people
through the Millennium Challenge Corporation. The information, opinions and
conclusions here do not represent the standing of the Millennium Challenge
Corporation or U.S. Government.
Millennium Challenge Account - Indonesia

MR 21 Building, 11th Floor,


Jl. Menteng Raya No. 21, Jakarta 10340
Tel. +6221 39831971 | Fax: +6221 39831970
info@mca-indonesia.go.id | www.mca-indonesia.go.id

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